AIM listed companies, at least some, still pander to their advisers in terms of the way they communicate, moreso, if they should even communicate. Why do they continually listen to their PR firms, even engage PR firms when they fail to instigate retail investor communications, yet still get paid handsomely each and every month.
One such company who has been very quiet on communications in the last year is Eden Research, even in the face of making significant commercial progress which they stated via RNS. The RNS channel offers two opportunities to communicate
1) Regulatory RNS for potentially price sensitive information which is an exchange requirement
2) RNS Reach for marketing your business
That said, it is likely that only those who follow a company will follow their RNS's, hence the need for a wider and more informative style of communication in addition to the RNS channel. During this last year, Eden's share price fell from circa 11.5pence to around 7.75 pence. However, since the 25th March 2018, Eden's share price has risen to around 11.5 pence representing a 48% increase in Eden's share price.
Why Eden has suddenly had a change of heart, I do not know, but I do know that it must have been a learning curve to them as well to see their share price mobilise upwards when they have been so very quiet in communicating for so very long. Their communication over the last few weeks outside of the RNS channel has been as follows:-
1) London Live, Making It Big In London Go to 7 minutes 50 seconds to see how the Wine industry is better protecting their vines against Botrytis disease, courtesy of Eden, citing Chablis as an example
2) Interview with Eden's Ceo, Sean Smith talking about the Company, global prospects, global partners and a march into the USA
3) An article in the National Financial press. A broad piece on Eden today and imminent activity siting Eden being 'very far advanced' on a major development with a global partner
4) A bullish and positive article on Eden from Shares Magazine titled 'Eden Research To Yield A Rich Harvest'
Investor communications does work. It is not an exchange requirement, though non-regulatory communication should be in my opinion.
It requires some reasonable time to be set aside to deliver the same. It requires structure…
